Application Of Strategic Trade Policy In Chinese Automobile Industry

New changes occurred after the World WarⅡ, which cannot be explained fully by the traditional trade theory. Under this situation, new trade theroy formed gradually on the process of reflecting of traditional theory. At the end of 1970s, with the development of new theory, a strategic trade policy was brought into being. Formed on the premise of economy of scale and imperfect competition, this policy took industrial orgnization and market structure theroy as research tools. The appearance of this policy shaked the free trade policy's optimality under economy of scale and imperfect competition, which proved kind of rationality of government interference. Also it proposed and proved the idea that proper strategic trade methods as custom and subsidy would help raise the trade profit of own country.Automobile indurstry is capital and technology-intensive, bearing the charateristics of scale merit and strong connection. Currently this industry is growing in our country, however, it still has a great long way to go compared with developed countries. After entering into WTO, our automobile industry gained unprecedented developing chance, but at the same time, they were also facing the severe challenge of WTO trade regulations and world automobile giants. Under this circumstance the highly-protected trade policy cannot meet the development of Chinese automobile industry. Based on these facts, this thesis researches the feasibility and actual effect of strategic trade policy carried on by our country.The thesis chooses automobile industry of our country to apply strategic trade policy. The first chapter introduces the background, significance, creative points of the thesis, and briefly reviews the development of strategic trade policy. The second chapter expounds the main contents of this policy. The third chapter summarizes the comment on strategic trade policy and the research on its feasibility. The fourth chapter introduces the basic situation of Chinese automobile industry, carries on empirical research on the effect of strategic trade policy of national automobile indtrustry to draw a conclusion. The fifth chapter proposes related policy suggestions based on the researched results,insisit that we should adjust the level of tariff and subsidy to proomote the industry.